Tax Bill: Arewa Civil Society Counters Northern Governors Over Plot to Block Legislation in NASS

The Arewa Civil Rights Movement (ACRM) has expressed disappointment over the Northern Governors Forum’s opposition to President Bola Tinubu’s tax reform bills, which are currently before the National Assembly.

The bills, aimed at reforming tax collection in Nigeria, include the Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill.

Speaking at a press conference on Wednesday in Abuja, Dr. Agabi Emmanuel, National President of the group, said the governor’s rejection of the bills is ill-conceived and would set the country back.

The movement argues that directing lawmakers to reject the bills due to issues with one is unjustified and oversteps the governors’ authority.

The contentious issue lies in the proposed Value Added Tax (VAT) sharing template, which reduces the federal government’s share from 15% to 10%.

However, the allocation among states will consider the derivation principle, encouraging states to attract businesses.

The ACRM views the governors’ claim that the North would be disadvantaged as disingenuous.

Instead, Emmanuel suggests this is an opportunity for northern states to create a more investment-friendly climate.

The movement disagrees with the Northern Governors Forum, stating that their rejection paints the North in a beggarly light and contradicts the region’s history of tax compliance.

Dr. Agabi urged northern lawmakers to disregard the governors’ directive, emphasizing their responsibility to constituents. Rejecting the bills would confirm lawmakers’ inability to serve and potentially lead to recalls.

The Arewa Civil Rights Movement called on northern governors to focus on their duties and account for excess earnings from the Federation Account since assuming office.

The movement also advised governors to reassess sectarian extremism, which harms revenue generation.

Agabi said in part: “Our Movement is concerned with the far-reaching consequences of the ill-conceived directive to northern lawmakers to reject the bills. First, it is wrong to direct lawmakers to reject the four bills because they have issues with just one.

“This will set the country back as it is creating needless drama and distraction that is unnecessary at this point. Secondly, we are of the view that the governors overstepped their remit by directing federal lawmakers to reject the bills.

“These are not state lawmakers, and even if they were it would amount to validating the allegation of rubberstamp parliaments that states are known for because of the overbearing attitude of these governors. But we are talking about federal lawmakers, who are employees of their constituents and sworn to protect the interests of the constituents.

“Additionally, the claim by the governors that the North would be disadvantaged by the VAT sharing formula on account of major companies being headquartered in southern states where their taxes would be captured is totally disingenuous.

“What we expect is that this is a wake-up call for us in the north to create a more investment-friendly climate. The governors cannot exploit sectarian extremism that discourages investments and expect profit-oriented organisations to site their headquarters in their states.

“Furthermore, we disagree with the Northern Governors Forum because their rejection of the proposed tax reforms paints the North in a beggarly light making it appear as if those of us from there are unwilling to be tax compliant.

“This is especially true when their opposition to the Tax Bills creates the impression that northerners are so impoverished that they cannot pay the associated taxes when the North has a rich history and tradition of being tax compliant.

“The Arewa Civil Rights Movement urges the northern lawmakers to disregard the directive from the state governors as they had no basis to issue such a directive. The lawmakers’ responsibility is to their constituents.

“Should the northern lawmakers reject the Bills based on the interference from the governors they would have confirmed to those who voted them into office that they are incapable of serving. Such disrespect for the wishes of their constituents will definitely result in a wave of recall as the people will not accept rubberstamp lawmakers.

“We urge the Northern Governors to get back to work while also preparing to account for what they did with the excess earnings that came into their states’ coffers from the Federation Account since they assumed office on May 29, 2023.

“They should also begin to explore how to walk back the sectarian extremism they adopted for their states that is now proving injurious to revenue generation.”